Sprint: AT&T purchase of T-Mobile will severely harm industry

Sprint CEO Dan Hesse has once again taken to openly opposing AT&T's proposed acquisition of rival carrier T-Mobile for $39 billion.

Said Hesse:

We just cannot let this happen. If the proposed AT&T and T-Mobile merger is allowed to go forward it can also push the wireless industry from competition to duopoly.

The duopoly would feature Verizon on the CDMA side and AT&T on the GSM side, leaving smaller carriers like Sprint with two monsters to compete with.

AT&T says their acquisition will help the company address growing capacity limitations.

The FCC and DOJ are currently looking into the merger, to see if it will violate any anti-trust laws. The acquisition is expected to close in 2012, if passed.

In response to Hesse, AT&T has pointed to comments the CEO made just months ago in which he called the carrier market "hyper competitive" capable of handling consolidation:

Given that Sprint is a major competitor to AT&T in the hyper competitive wireless market Mr. Hesse describes, no one should be surprised that they would oppose this merger. But it is self-serving for them to argue that the highly competitive wireless market they cited only months ago is now threatened by the very type of transaction they seemed prepared to defend previously.

Originally posted by baxter00: AT&T should take all that money they make overcharging their customers and use it to update their equipment. Then they wouldn't have to buy another carrier to compensate for their shortcomings.

That "money" is going to their shareholders and executives and as long as they are seeing growing profits they don't care how fast their equipment is updated.

I totally agree with Hesse and frankly, opinions aside, anyone that honestly believes this is "just business" and "the way it goes" and/or "capitalism" need to make like pictures and "be seen and NOT HEARD" because they're morons.

This will inevitably limit competition disproportionately and allow the 2 big ones to charge how much they want and slide on service/features/value. Att and Verizon have already demonstrated that their high prices aren't about to budge with the 10 year old 59.99/900 minutes package and 20 freakin bucks for unlimited texting. This is bad for an already hurting economy.

All other opinions contrary to this inevitable outcome should stifle before putting your head up your ass.

This message has been edited since its posting. Latest edit was made on 17 Apr 2011 @ 19:09

AT&T and Verizon have the best coverage and best phones selection and T-Mobile was the only other major carrier with low prices. T-Mobile was also the only other GSM carrier in the US. With ATT getting T-Mobile out of the picture, who's going to go to Sprint with inferior coverage by far and a more limited selection of phones (and no iPhone).

I left AT&T 2yrs ago to get away from their ridiculous prices and went to T-Mobile with my iPhone.

If this buyout goes through, then the market is a duopoly plain and simple. It will be either pay crazy prices with Verizon/AT&T or go to a small carrier and face having inferior coverage.

Also Sprint has been teetering on bankruptcy for years, so if AT&T and Verizon corner the market, then Sprint will get bought out sooner or later.

If the merger goes through, and I am not allowed to keep my plan the way it is which I have had with Tmobile since they were voicestream (damn near!!!), I will move to cricket, boost whatever else on principle alone!!!

Originally posted by flamitaz: If the merger goes through, and I am not allowed to keep my plan the way it is which I have had with Tmobile since they were voicestream (damn near!!!), I will move to cricket, boost whatever else on principle alone!!!

if the merger goes through your plan should be granfathered in. if you renew your contract after the merger you may lose it. i hade nextel and when sprint took them over my contract was granfathered in. when my contracted ended and i was month to month it stayed the same tell i upgraded my phone